Why did Doordash's net profit turn positive in Q3 2024?

Doordash's net profit turned positive in Q3 2024 due to several key factors: 1. **Revenue Growth**: DoorDash experienced a significant increase in revenues, which grew by 23.3% year-over-year to $2.63 billion in Q2 2024. This growth was driven by strong performance in total orders and Marketplace Gross Order Value (GOV), enhanced logistics efficiency, and a increased contribution from advertising. 2. **Marketplace Gross Order Value (GOV)**: The GOV, which is a key metric for DoorDash, saw a 20% increase year-over-year, reaching $19.7 billion. This indicates a strong consumer demand and engagement with the platform. 3. **Partnerships and Expansion**: DoorDash's strategic partnerships, such as with Warner Bros. Discovery's WBD streaming service Max, JPMorgan Chase & Co.'s JPM U.S. consumer and commercial banking division Chase, and Academy Sports and Outdoors ASO, have contributed to its growth. These partnerships have enhanced convenience for shoppers and bolstered DoorDash's total orders. 4. **Operational Efficiency**: The company's focus on operational efficiency and logistics has improved its unit economics. This, coupled with a stable average order value (AOV) and an increase in users and order frequency, has contributed to its profitability. 5. **Cost Management**: Despite the challenges posed by new minimum pay regulations in New York City and Seattle for delivery workers, DoorDash has managed to improve its cost structure. This, combined with a decrease in labor costs, has allowed the company to turn a profit. In conclusion, DoorDash's net profit turned positive in Q3 2024 due to a combination of revenue growth, strategic partnerships, operational efficiency, and effective cost management. These factors collectively contributed to the company's financial performance and profitability during the quarter.